If you ever needed proof that the financial press has been completely indoctrinated in the cult of Keynesian central banking consider the attached Bloomberg note on the recent tiny decline in Chinese industrial company profits. Without breaking for anything more than a comma, its hapless Hong Kong stringer, one Malcolm Scott, conjoined the fact of less profits with the imperative for moar……money.

Industrial profits in China  fell the most in two years, underscoring the need for looser monetary conditions as the world’s second-largest economy slows.

Perhaps Bloomberg is no longer using carbon units to post its news stories and has gone straight to algo-writers designed to directly feed algo-readers without the bother or cost of human intercession. But regardless of whether “Malcolm Scott” is carbon or silicon based, the attached is clearly presented as a news story and the above excerpt as a declarative sentence. Accordingly, by the lights of Bloomberg and the rest of the mainstream financial press which it echoes, it is now the job of central banks to print money to ensure that at no point in time do profits—-and therefore their stock market capitalizations—-fall by even so much as 2.1% over prior year.

That’s right. In the land of red capitalism, where corporate accounting and reporting are so advanced that profit results are published on a monthly basis, the doctored number for all of China’s industrial companies in October came in at 2.1 percent less than last year’s fictional number.

Once upon a time, even journalists recognized that accounting profits are the swing residual after all fixed and variable costs have been accounted for and that in every capitalist economy known to history profits have been violently cyclical. But now, apparently, a 2% change in the bottom line results of China’s cooked corporate books is straight-away proof of the need for “looser monetary conditions”.

Well, here is the balance sheet trend for the People’s Printing Press of China. It has expanded by a stunning 9X since the year 2000, thereby fueling the greatest sustained explosion of new credit in recorded history. In fact, total credit owed by China’s household, business, financial and government sectors has risen from $1 trillion to $25 trillion over the same period. Exactly how can you get any “looser” than that?